Beijing- and Morrisville-based Lenovo confirmed last week that it is cutting roughly 3% of its U.S. headcount (just over 150 jobs) after tariffs punched a $50 million to $60 million hole in its most recent quarter. The company employs approximately 5,000 people in the United States and 72,000 worldwide, so the reduction appears modest on paper, but it is a significant jolt for the teams that absorb it.
Layoffs said to be part of larger review, but uncertainties loom large
“We are not worried about the tariffs,” Yuanqing Yang, CEO, Lenovo, told analysts on an earnings call in May. “We are worried about the uncertainty and the quick changes. If you don’t know when the tariffs will increase or what it will be for certain countries, those uncertainties will impact performance.”
Lenovo says the layoffs are part of a broader cost review, not a retreat.
“Like all businesses, we regularly review our cost structure to align with external market dynamics and make workforce adjustments where necessary,” said a statement provided by the company this week. “We are currently making strategic reductions in some parts of our North America business and will continue to invest and focus on initiatives that accelerate the growth and the overall transformation of the company.”
Triangle roots, national reach
The cuts will be felt most around Lenovo’s North American headquarters, located on the edge of North Carolina’s Research Triangle Park, where roughly 2,000 of its U.S. employees are based. Lenovo has been a fixture in the Triangle since the mid-2000s, expanded its campus in 2012, and even added its name to Raleigh’s major arena last fall. State data still lists the PC giant as a top-20 local employer, though this isn’t its first pruning. Smaller rounds were made in 2015, 2017, 2019, and 2022.
Nationally, the company employs approximately 11,500 people across North and South America, roughly 16 percent of its global workforce. The latest restructuring joins a familiar tech-sector pattern of surgical, region-specific cuts.
Betting big on AI
The timing is a bit awkward. Less than a month ago, Lenovo touted new AI‑ready infrastructure and trumpeted the coming decade as the “AI decade” for the company. The message from CEO Yuanqing Yang was that higher-margin, AI-flavored hardware would carry Lenovo beyond the fickle PC market. That ambition still stands; executives insist the U.S. shake‑up frees capital for exactly those bets. If the strategy lands, the 3 percent reduction may look like a short‑term sting on the path to a more extended play.
For employees packing their desks this week, this narrative doesn’t offer much comfort, but it does frame Lenovo’s move: tighten costs where you can, double‑down where you must, and try to stay one step ahead of tariff roulette.
Another tech giant, Intel, recently announced a significant cost-cutting initiative to slash operating expenses by $500 million this year and an additional $1 billion in 2026. The chipmaker said these cuts are part of a broader effort to “drive improved execution and operational efficiency.”